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TMI Blog2017 (5) TMI 674X X X X Extracts X X X X X X X X Extracts X X X X ..... rely an accommodation entry, explaining the manner of execution also coupled with the above facts as found by the Assessing Officer that no evidence of services rendered by the agents was filed by the assessee, the agents had no knowledge of the product sold, had no links with the purchasers, had claimed the receipt of commission only for introducing the buyers and the fact that most of the buyers were known to the assessee and did not require any introduction, seals the matter against the assessee. Thus we uphold the order of the Commissioner of Income-tax (Appeals) confirming the disallowance of commission expenses paid - Decided against assessee. - I. T. A. Nos. 733/Chd/2012and 443/Chd/2015 - - - Dated:- 12-1-2017 - Bhavnesh Saini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edings the Assessing Officer found that the assessee had claimed expenses amounting to ₹ 23,31,537 on account of commission paid on sale of power press machines. The assessee was asked to justify the expenses. On scrutiny of the details and evidences filed the Assessing Officer found that the assessee had paid commission to 15 persons. The Assessing Officer issued summons under section 131 to the agents in response to which 11 appeared and their statements were recorded. From the statement recorded the Assessing Officer concluded that the commission paid was bogus since none of the persons had any experience in the line of selling machines, had no knowledge of power press machines, did not know the purchasing parties, got heavy commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s had denied receiving commission and they had not proved the genuineness of their statement by way of any documentary evidence. 7. The learned Departmental representative, on the other hand, relied upon heavily on the order of the Assessing Officer as well as that of the learned Commissioner of Income-tax (Appeals). 8. We have heard the learned representatives of both the parties, perused the findings of the authorities below and considered the material available on record. 9. We find no infirmity in the order of the learned Commissioner of Income-tax (Appeals) confirming the disallowance made on account of commission. The relevant findings of the Commissioner of Income-tax (Appeals) upholding the disallowance at paragraph 3.3 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the course of appellate proceedings, the appellant has not given any details of services rendered by these persons for which commission has been claimed. The appellant has also not been able to rebut the findings of the Assessing Officer discussed at pages 2 to 4 of this order, or give any explanation as to how inspite of these findings, the commission payments can be held to be genuine. The appellant has merely claimed that the Assessing Officer was biased and that he pressurised the persons whose statements were recorded. Perusal of the assessment records shows that the Assessing Officer has recorded the detailed statements under section 131 in order to establish the genuineness or otherwise of the commission expenses. The claim of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax (Appeals). The only evidences on which the learned authorised representative places reliance upon is the Income-tax returns of the agents which do not establish that they had done any work for the assessee. Further the statement of the three agents admitting in so many words that the commission paid was merely an accommodation entry, explaining the manner of execution also coupled with the above facts as found by the Assessing Officer that no evidence of services rendered by the agents was filed by the assessee, the agents had no knowledge of the product sold, had no links with the purchasers, had claimed the receipt of commission only for introducing the buyers and the fact that most of the buyers were known to the assessee and did ..... X X X X Extracts X X X X X X X X Extracts X X X X
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